Saudi Arabia’s economy expanded by 1.3% year-on-year in the fourth quarter of 2024, driven by growth in non-oil and government sectors, according to preliminary data from the General Authority for Statistics. Non-oil activities increased by 4.3%, and government activities rose by 2.6%, while oil activities declined by 4.5%.
The International Monetary Fund has revised its 2024 GDP growth forecast for Saudi Arabia to 1.5%, down from a previous estimate of 1.7%, citing extended oil production cuts and regional conflicts as contributing factors.
Looking ahead, the IMF projects Saudi Arabia’s economic growth to accelerate to 4.6% in 2025, reflecting expectations of a rebound in oil production and continued expansion of the non-oil sectors.
In response to these dynamics, the Saudi government has outlined a budget for 2025 that anticipates a fiscal deficit of SAR 101 billion ($26.88 billion), or approximately 2.3% of GDP. This deficit is attributed to sustained investments in Vision 2030 projects aimed at diversifying the economy away from oil dependence.
